OYO clocked Rs 175 cr adjusted EBITDA in Q1, CEO Ritesh Agarwal tells employees: Sources

New Delhi: IPO-bound OYO clocked an adjusted EBITDA of Rs 175 crore in the first quarter of the current financial year ended June, CEO Ritesh Agarwal told employees in a townhall on Monday, according to sources.

The travel tech firm had an EBITDA of nearly Rs 7 crore in the same quarter last fiscal, therefore it has witnessed a 25 times jump year-on-year.

Addressing the townhall, Agarwal expressed confidence that OYO will achieve or probably surpass its previously stated target of Rs 800 crore EBITDA for the full financial year, sharing that increased focus on customer experience and quality improvement measures will drive the firm's growth during FY24, sources said.

According to sources, Agarwal during the townhall presentation said, "Our Q1 adjusted EBITDA of approximately Rs 175 crore makes it an exciting start to the year. If you annualise this outcome, it sets us up for Rs 700 crore adjusted EBIDTA this financial year, though, in all likelihood, and we will achieve or probably surpass our previously stated target of Rs 800 crore. The Q1 adjusted EBITDA of Rs 175 crore is nearly same as what we achieved in Q4 last year, which is seasonally the strongest quarter".

He informed that OYO added over 1,000 hotels and 3,500 homes to its platform in the first quarter of FY24.

"I am confident that we can deliver on our target for this year. Our cost rationalisation measures in Europe and busy summer month have positively impacted our EBITDA in the first quarter. This coupled with our increased focus on customer experience and quality improvement measures will drive our growth this year," the sources said quoting Agarwal.

EBITDA, a measurement of a company's earnings, stands for earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is a type of EBITDA that doesn't include irregular items.

OYO had reported its maiden EBITDA positive quarter in an addendum filed with Sebi for its IPO reporting a Rs 7 crore adjusted EBITDA in the first quarter of the last financial year.

OYO marked its first full year of EBITDA profitability in the previous financial year. Subsequently, the company's founder Agarwal, during a townhall presentation to employees earlier this year, had shared that the expect to clock adjusted EBITDA of nearly Rs 800 crore in FY2024.

In March 2023, OYO refiled its Draft Red Herring Prospectus (DRHP) with the stock market regulator SEBI under the recently introduced pre-filing route. OYO's last submission to SEBI, in November 2022, was of its updated financial results for the first half of financial year 2022-23.